Take advantage of a potential rebound.

According to last financial statement, the company upbeat estimates in earnings by more than 7%. Patents registers increased significantly during 2013 by 83% and also did the secure transactions segment through which the company manufactures chip for credit cards. Regarding geographical distribution, the major mover of its development still being Americas but the Asia-Pacific region did great improvements. Sales could come to €3,152 million by 2016, or a 22% rise.

The stock is currently oversold and is trading inside a mid-term bearish trend. A kind of double bottom could be formed near the EUR 75 midterm support, helped by the 100-week moving average and the lower bound of the declining triangle. Once the bearish reversal started, Gemalto should be able to confirm its rebound in further sessions while moving toward the EUR 79 resistance but remaining inside the graphical pattern.

Our trading strategy consists on benefiting from a growth possibility close to EUR 79.4, involving a potential gain of 6.3%. Investors might place a stop loss order at EUR 72.8 in order to avoid important losses.